Confirmed by experiment. :D

I've just left reading LW to eat 2 spoons of olive oil. For my taste receptors, it has a bad taste, but not a strong one. I certainly do not desire to eat more (and I am not afraid that this taste would ever asociate with anything I would voluntarily eat) and I had to drink water afterwards, but it was not that bad, and at the moment I write this comment the effect is over.

However, it vas very pleasant to leave the kitchen after the experiment. So here is another hypothesis: this diet works because it associates negative feelings with kitchen and eating in general.